US-based multinational energy company Chevron, through its subsidiary Chevron Canada has announced its plans to acquire 50% interest in Kitimat liquefied natural gas (LNG) project located in British Columbia.
The amount of the acquisition was not disclosed.
The Kitimat LNG project, currently under the front end engineering design phase, has a Canadian National Energy Board license to export 10 million tons of LNG every year.
Chevron Canada will purchase all the interests owned by EOG Resources Canada, Encana, and from Apache’s subsidiary in the LNG project to hold 50% interest in the project.
Upon completion of the acquisition, Chevron and Apache each will own 50% stake in the project.
Chevron vice chairman George Kirkland said the investment in the project will grow the company’s LNG portfolio.
"The Kitimat LNG development is an attractive opportunity that is aligned with existing strategies and will drive additional long-term production growth and shareholder returns," Kirkland added.
Chevron subsidiary will also buy 50% interest in both the proposed Pacific Trail Pipeline (PTP) project, and stake in about 644,000 acres of petroleum and natural gas rights in the Horn River and Liard Basins in British Columbia.
Apache owning the remaining 50% interest in the Horn River and Liard Basins, will operate the natural gas resources developments.